Former Yugoslav Republic of Macedonia: Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics: Banking Supervision, Payment Systems, Monetary and Financial Policy Transparency, and Anti-Money Laundering and Combating the Financing of Terrorism

IMF Staff Country Reports, December 2, 2003

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Former Yugoslav Republic of Macedonia: Financial System Stability Assessment, including Reports on the Observance of Standards and Codes on the following topics: Banking Supervision, Payment Systems, Monetary and Financial Policy Transparency, and Anti-Money Laundering and Combating the Financing of Terrorism

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Bibliographic details

• Published: December 2, 2003
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781451826081.002

Key findings

• The financial system remains vulnerable to weak governance in smaller banks.
• The financial system is also vulnerable to weaknesses in banks’ balance sheets.
• Banking is characterized by high real interest rates, large spreads, and a limited appetite for lending.
• Stress tests indicate that the banking system is relatively resilient to the direct effects of individual shocks, with credit risk having the greatest impact.
• Deficiencies in the framework for banks’ liquidity management are developmental in nature but need to be addressed to avoid systemic problems.

Risks and stress-testing results

• Credit risk is identified as the shock with the greatest impact on the banking system.
• Overall assessment from stress tests: banking system relatively resilient to direct effects of individual shocks.

Liquidity management

• The framework for banks’ liquidity management contains developmental deficiencies.
• These liquidity-management deficiencies should be addressed to avoid systemic problems.

Structural market features

• Banking sector features highlighted:
  • High real interest rates
  • Large interest-rate spreads
  • Limited appetite for lending

Subjects and keywords (as provided)

• Subjects: Anti-money laundering and combating the financing of terrorism (AML/CFT), Bank deposits, Banking, Commercial banks, Credit, Credit risk, Crime, Financial institutions, Financial regulation and supervision, Legal support in revenue administration, Money, Revenue administration
• Keywords: a number of bank, Anti-money laundering and combating the financing of terrorism (AML/CFT), bank lending, bank liability, bank supervisor, Central and Eastern Europe, Commercial banks, CR, Credit, credit risk, Credit risk, Eastern Europe, Europe, foreign currency, FYR Macedonia, interest rate, ISCR, Legal support in revenue administration, money market

Content in this bundle

• Financial System Structure, 1998–2002
  • Financial System Structure, 1998–2002 (Markdown version)
  • Financial System Structure, 1998–2002 (PDF)